RBI allows BCs to update KYC information
Reserve Bank of India (RBI) eased the Know Your Customer (KYC) norms for convenience of the customer according to a circular released June 12.
Banks shall complete the KYC updation of customers who are flagged as 'low risk' whose KYC have not been updated, within a year or June 2026, whichever is later.
Moreover, the Central bank also introduced the facility to upload KYC through video. The facility is called Video based Customer Identification Process (V-CIP) for customer onboarding and information updation. RBI also said banks shall enable its banking correspondents to undertake the KYC updation activity. These facilities shall be provided to reactivate inoperative accounts, RBI said in a separate circular. Banks have been advised to reach out to semi-urban and rural areas and set up camps to complete the process.
The circular becomes important at a time when a lot of PMJDY accounts were reportedly inoperative due to difficulties in KYC updation and eligible beneficiaries for Direct Benefit Transfer based schemes faced snags in withdrawing money.
'Simplifying KYC while maintaining regulatory safeguards will enable the ecosystem to onboard customers faster, reduce friction, and accelerate the adoption of formal financial services,' said Payments Council of India (PCI) in its release.
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